HMV profits up 18.4%

Entertainment giant HMV Group has seen its annual revenues rise 4.4 per cent to £1.96 billion for the financial year ending April 25th.

After tax profits have reached £44.2 million, an increase of 18.4 per cent over the year before.

Like-for-like sales for HMV UK and Ireland rose 1.9 per cent, however, Waterstones’ like-for-like sales have fallen 3.8 per cent. Sales on hmv.com rose 16 per cent, while revenue on waterstones.com was up 60 per cent.

Games have been a key driving force behind the firm’s success, with the product range accounting for 24 per cent of the company’s sales – a figure boosted by the roll-out of the retailer’s pre-owned range, Re/Play.

HMV has also recently launched its Purehmv loyalty card scheme, entered into the live music market and bought 25 former Zavvi stores.

“At the end of the second year of our three-year transformation plan the Group has delivered further profit growth, despite the challenging retail environment,” said CEO Simon Fox.

“We are continuing to adapt to meet the changes in our markets and, whilst there is still much to do, our plans for the third year of our programme are on track.

“We are also looking at further growth opportunities available to us, and are very pleased with the recently announced joint venture in live music and partnerships for film and mobile. I am confident that we have the right strategy in place to continue to build a strong and vibrant business for the future.”

MCV is the leading trade news and community site for all professionals working within the UK and international video games market. It reaches everyone from store manager to CEO, covering the entire industry. MCV is published by NewBay Media, which specialises in entertainment, leisure and technology markets.